meos
Level 1
12-07-2019
02:38 AM
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IRonMaN
Level 15
12-07-2019
02:38 AM
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You don't. S corps can't walk or talk and therefore they can't earn wages. So someone screwed something up along the path to year end. So I need to ask - who created it and why is there a W-2 involved here?
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meos
Level 1
12-07-2019
02:38 AM
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I know. He worked for this office (a PLLC) and they paid him under his EIN. Then they found out and gave him a 1099-MISC. So he got both a W-2 and a 1099-MISC for this year. I don't know how to account for the W-2.
IRonMaN
Level 15
12-07-2019
02:38 AM
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Who were the checks made out to? If it was the shareholder, tell the other company to re-issue the W-2 using his Social Security number. If they made them out to the S corp, never mind, I really hope someone didn't write a payroll check out to a business.
Slava Ukraini!
Slava Ukraini!
meos
Level 1
12-07-2019
02:38 AM
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I really don't know. But on the W-2, it is the business name as employee. I will tell him to do as you suggested. Thank you very much.
IRonMaN
Level 15
12-07-2019
02:38 AM
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You betcha!
Slava Ukraini!
Slava Ukraini!
qbteachmt
Level 15
12-07-2019
02:38 AM
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Your client needs to give them a W9 and then the PLLC doesn't report using Either Form; not a W2 and not a 1099-Misc, either. The problem with issuing a corrected W2 for the SSN is that any business expenses related to that contract are now not allowed as business expense. I would have them handle this as correcting for 0 wages; but they won't like that amendment process.
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sjrcpa
Level 15
12-07-2019
02:38 AM
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"The problem with issuing a corrected W2 for the SSN is that any business expenses related to that contract are now not allowed as business expense" Why wouldn't business expenses paid by the PLLC be allowed?
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qbteachmt
Level 15
12-07-2019
02:38 AM
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It isn't clear that the PLLC is also the S corp. I read this as two entities. The 1099-Misc is not required; but at least, it would be the correct reporting for the relationship for the PLLC making payments to the person who is working under the umbrella of their own S Corp. When people get handed a W4, they don't always understand that makes them a direct hire and not a contractor.
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"Level Up" is a gaming function, not a real life function.
"Level Up" is a gaming function, not a real life function.